Australia GDP: Is the Growth Sustainable?

The transcript discusses the probabilities of a Fed rate hike, noting that the likelihood for September is low, with December being more plausible. It highlights the impact of recent data on market expectations and the influence of global economic factors, including Australian GDP sustainability and the roles of the Bank of Japan and Bank of England. The discussion emphasizes the need for certain economic conditions to align for a rate hike to occur, such as a rally in risk asset classes and a weaker Aussie dollar.

What probability is considered necessary for a Fed rate hike to be likely?

• Less than 50%

• Exactly 50%

• Exactly 66%

• Over 50%

What is a key factor in sustaining Australian GDP growth according to the transcript?

• Robust export volumes

• Higher government spending

• Increased consumer spending

• Rising property prices

What economic action could help weaken the Aussie dollar?

• A decrease in global oil prices

• A Fed rate hike

• A Bank of Japan stimulus

• An increase in Australian interest rates

What is the Bank of Japan's stance on the yen according to the transcript?

• They prefer a weaker yen

• They can tolerate a stronger yen

• They want to peg the yen to the dollar

• They aim to eliminate the yen

What is a potential action by the Bank of England mentioned in the transcript?

• Increasing government spending

• Introducing a new currency

• Cutting interest rates

• Raising interest rates